Net Profit Margin Calculator

What is Net Margin?

Net profit margin divides net income by total revenue to show what fraction of every dollar of sales ultimately flows to the bottom line after deducting all costs, including operating expenses, interest, and income taxes. Unlike gross margin, it captures the full cost structure of the business. Net margin varies widely by industry — grocery retailers may earn 1–3%, while software companies can exceed 20% — so it is most useful for peer comparisons and trend analysis within the same sector.